Trade Alert: Top Names

A bullish options bet on a hyper growth SaaS stock.

Scanning Last Night’s Top Names

We already have trades open on the top three names in last night’s top names.

Doing some digging on the #4 name on that list, I found that it’s owned by one of the top fundamental analysts on Seeking Alpha (in my opinion, and I don’t even like the guy personally). In fact, he says it’s his favorite SaaS stock, with no debt, expanding margins, and a growth rate of over 30% per year.

Today we’re going to place a bullish options bet on it, using an approach modeled on that of one of the top traders I follow on X (I am experimenting with ways we can generate bigger returns when we’re right—to give us a shot at a ~500% return, perhaps, instead of a ~200% one).

Details below.

Today’s Top Names Trade

The stock is Samsara (IOT 0.00%↑), and our trade is buying the $60 strike calls expiring on April 17th, for $1.90. The max gain on 2 contracts is uncapped, the max loss is $380, and the break even is with IOT at $61.90. This trade filled at $1.90.

What’s Different About This Trade

The company is scheduled to report earnings in March, and we are buying calls fairly far out of the money. But these calls expire a month later, so our bet here is that they’ll get a nice pop even if IOT spikes after earnings in March, even if it doesn’t hit $60 then.

Exiting This Trade

I’m going to open a GTC order to sell half of these calls at 3x what I paid for them, and plan on being out of all of them after earnings.